FTSE 100: attempted rebound from major support

The FTSE 100 tries to rebound, but the figures on US inflation will be decisive

The British stock market is trying to rebound with its international counterparts after falling at the end of last week and on Monday. The FTSE 100 is trying to get higher after returning to an important price level at around 7200 points which previously corresponded to the resistance of the summer of 2021.

The FTSE 100 formed a ‘harami’ pattern from this support on Tuesday, paving the way for a rebound. The index continues to rebound on Wednesday, but the publication of US inflation figures this afternoon will be crucial.

Higher-than-expected inflation figures would put more pressure on Fed members to accelerate monetary tightening, which would weigh on the indices and could jeopardize the ongoing rebound.

Conversely, inflation figures below expectations would start to ease inflation fears and could reduce expectations of rate hikes, which should support the rebound in equity markets.

FTSE 100 daily price chart – key levels


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